The Federal Reserve Bank of New York released its Household Debt and Credit Report this month.
The report, which uses anonymous credit data to generate a
nationally representative sample, found that consumers#39; overall
indebtedness increased $2 billion to $11.9 trillion in the second
quarter of 2015.

This number was aided by the increased number of Americans
buying cars which pushed auto loan debt above $1 trillion for the
first time in US history. According to the report,
Americans took out $119 billion in auto loans from April through
June, up from $95 billion in the first quarter of the year.
Through the first half of the year, auto sales are on pace to
challenge the record of $17.4 million set in 2000.

Outstanding mortgage debt dropped by 0.7 percent
in the second quarter to $8.12 trillion. Mortgage debt
declined by $55 billion quarterly, while total household
indebtedness increased just $2 billion from Q1 2015 up to $11.85
trillion in Q2. Foreclosures hit their lowest point in the
16-year history of the bank#39;s Consumer Credit Panel, with
95,000 new foreclosures in the second quarter  down from
112,000 at the same time last year.

The report found that mortgage balances and HELOC dropped by $55
billion and $11 billion, respectively. In the second quarter,
there were $466 billion in new mortgage originations, and almost
half of those originations were driven by borrowers with credit
scores over 780. Only 8 percent ($38 billion) of all new
mortgages were originated by borrowers with credit scores 660 and
below.

Finally, credit card balances increased by $19 billion, while
student loan balances  which totaled $1.2 trillion in June
 remained flat. However, although student loans make
up only 10% of all consumer debt, the amount of seriously past due
student loan payments total nearly one-third of all seriously
past-due debt payments.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.